As reported by the Assembly Financial Institutions
and Insurance Committee on October 23, 2008, with amendments.

An Actconcerning certain mortgage foreclosure
consultant practices and supplementing Title 46 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. This act shall be
known and may be cited as the "Foreclosure Rescue Fraud Prevention
Act."

2. As used in this act:

“Business day” means any day
other than a Saturday, Sunday, or a federal holiday.

"Distressed
property" means residential real property consisting of from one to six
dwelling units, at least one of which is occupied by the owner as a primary
residence, and which is the subject of a foreclosure or tax sale proceeding, or
which is at risk of loss due to nonpayment of taxes or whose owner is more than
90 days delinquent on any loan that is secured by the property.

"Distressed property
purchaser" means a person who acquires an interest in a distressed
property through a distressed property conditional conveyance or a distressed
property conveyance, or a person who participates in a joint venture or joint
enterprise involving a distressed property conditional conveyance or a
distressed property conveyance. The term "distressed property
purchaser" does not mean a federally insured financial institution or a
person who acquires distressed property through a deed in lieu of foreclosure
or a person acting in participation with any person who acquires distressed
property through a deed in lieu of foreclosure, provided that person does not
promise to convey an interest in fee back to the owner or does not give the
owner an option to purchase the property at a later date.

"Distressed property
conditional conveyance" means a transaction in which an owner transfers an
interest in fee, or a beneficial interest created through a trust document, in
the distressed property; the acquirer of the property allows the owner to
occupy the property; and the acquirer of the property or a person acting in
participation with the acquirer of the property conveys or promises to convey
an interest in fee back to the owner or gives the owner an option to purchase
the property at a later date.

“Distressed property conveyance”
means a transaction in which an owner transfers an interest in fee in a
distressed property.

"Distressed property
service" means, without limitation, any of the following:

(1) debt, budget, or
financial counseling of any type;

(2) receiving money for the
purpose of distributing it to creditors in payment or partial payment of any
obligation secured by a mortgage or other lien on a distressed property;

(3) contacting creditors on
behalf of an owner;

(4) arranging or attempting
to arrange for an extension of the period within which the owner may cure the
owner's default and reinstate a debt obligation;

(5) arranging or attempting
to arrange for a delay or postponement of the time of sale of the distressed
property;

(6) advising with respect to
the filing of any document or assisting in any manner in the preparation of any
document for filing with any court; or

(7) giving advice,
explanation, or instruction to an owner that in any manner relates to the cure
of a default or forfeiture or to the postponement or avoidance of a sale of the
distressed property.

"Foreclosure
consultant": (1) means any person, located out-of-State or within the
State, who, directly or indirectly, for compensation from an owner, makes any
solicitation, representation, or offer to perform, or who performs, any
distressed property service that the person represents will in any manner do
any of the following in relation to the owner’s distressed property:

(a) prevent or postpone the
foreclosure sale or the loss of the property due to nonpayment of taxes;

(b) obtain any forbearance
from any beneficiary or mortgagee or relief with respect to a tax sale of the
property;

(c) assist the owner in
exercising any right of reinstatement or right of redemption;

(d) obtain any extension of
the period within which the owner may reinstate the owner's rights with respect
to the property;

(e) obtain any waiver of an
acceleration clause contained in any promissory note, contract, or mortgage
evidencing or securing a debt in relation to the property;

(f) assist the owner in
obtaining a loan or advance of funds to pay off the promissory note, contract,
or mortgage evidencing or securing a debt in relation to the property; or

(g) avoid or ameliorate the
impairment of the owner's credit resulting from default on the promissory note,
contract, or mortgage, or the conduct of a foreclosure sale or tax sale or
offer to repair the owner’s credit.

(2) shall not include any of
the following:

(a) a housing counseling
agency contracted by the United States Department of Housing and Urban
Development to provide counseling;

(b) a person who holds or is
owed an obligation secured by a lien on any distressed property in situations
in which the person performs services in connection with the obligation or
lien, provided the obligation or lien did not arise as the result of, or as
part of, a proposed distressed property conditional conveyance or a distressed
property conveyance;

(c) a person licensed to
practice law in this State while acting under the authority of that license; 1[or]1

(d) a nonprofit, charitable
entity qualified pursuant to section 501(c)(3) of the Internal Revenue Code of
1986 (26 U.S.C. s.501(c)(3)), which is licensed pursuant to P.L.1979, c.16
(C.17:16G-1 et seq.), and which offers counseling or advice to an owner of a
distressed property, provided the entity does not contract for services with
for-profit lenders or distressed property purchasers or any person who
structures or plans a distressed property conveyance; 2[1or]2

(e) a municipality which
has a tax lien on distressed property2; or

(f) an assignee or a
purchaser of a municipal tax lien from a tax sale2.1

“Owner” means an owner of
record of title to a distressed property.

“Residual income” means an
owner’s net income available to meet living expenses after the payment of all
ordinary and necessary debt, including payments under an option to purchase
back the owner’s property transferred in a distressed property conditional
conveyance.

3. A foreclosure consultant
shall not conduct any business in this State until the foreclosure consultant:

a. obtains a bond from a
surety company authorized to do business in the State in a form and an amount
to be prescribed by the Director of the Division of Consumer Affairs by
regulation; and

b. files the bond with the
director and obtains written approval of the bond from the director.

For the purposes of complying
with the requirements of this section, “foreclosure consultant” shall not
include:

(1) a bank, savings bank,
savings and loan association, credit union, or other federally insured
financial institution, or insurance company organized, chartered, licensed, or
holding a certificate of authority to do business under the laws of this State
or any other state or under the laws of the United States;

(2) a person licensed
pursuant to the “New Jersey Licensed Lenders Act,” P.L.1996, c.157 (C.17:11C-1
et seq.), while acting under the authority of that license; or

(3) a person licensed as a
real estate broker, broker-salesperson, or salesperson pursuant to R.S.45:15-1
et seq., while acting under the authority of that license.

4. a. A foreclosure
consultant contract shall be written in plain language and shall fully disclose
the exact nature of the foreclosure consultant's services and the total amount
and terms of compensation.

b. The following notice,
printed in at least 14-point boldface type, if the contract is printed, or in
capital letters, if the contract is typed, and completed with the name of the
foreclosure consultant, shall be printed immediately above the statement
required by subsection c. of this section:

"NOTICE
REQUIRED BY NEW JERSEY LAW

.........................................(Name)
or anyone working for him or her CANNOT:

(1) Take any money from you
or ask you for money until .........................................(Name) has
completely finished doing everything he or she said would be done; or

(2) Ask you to sign or have
you sign any lien, mortgage, or deed unless all provisions of the “Foreclosure
Rescue Fraud Prevention Act,” P.L. , c (C. ) (pending before the
Legislature as this bill), and any other applicable federal and State laws have
been complied with.

(3) Guarantee that they will
be able to refinance a loan on your home or arrange for you to keep your home.”

c. A foreclosure
consultant contract shall be written in the same language as principally used
by the foreclosure consultant to describe the consultant’s services or to
negotiate the contract, shall be dated and signed by the owner, and shall
contain in immediate proximity to the space reserved for the owner's signature
a conspicuous statement in 14-point boldface type, if the contract is printed,
or in capital letters, if the contract is typed, as follows:

"You, the owner, may cancel
this transaction at any time until after the foreclosure consultant has fully
performed every service the foreclosure consultant contracted to perform or
represented would be performed. See the attached notice of cancellation form
for an explanation of this right."

d. A foreclosure consultant
contract shall contain on the first page, in a type size no smaller than that
generally used in the body of the document, each of the following:

(1) the name and address of
the foreclosure consultant to which the notice of cancellation is to be mailed;
and

(2) the date the owner
signed the contract.

e. A foreclosure
consultant contract shall be accompanied by a completed form, captioned
"NOTICE OF CANCELLATION" which shall be attached to the contract and
easily detachable, and shall contain, in at least 14-point boldface type, if
the contract is printed, or in capital letters, if the contract is typed, the
following statement written in the same language as used in the contract:

"NOTICE
OF CANCELLATION

........................................

(Enter
date of transaction)

You may cancel this
transaction, without any penalty or obligation, at any time until after the
foreclosure consultant has fully performed every service the foreclosure
consultant contracted to perform or represented would be performed.

To cancel this transaction,
mail or deliver a signed and dated copy of this cancellation notice, or any
other written notice to:

......................................(Name
of foreclosure consultant) at ......................................(Address of
foreclosure consultant's place of business)

I hereby cancel this
transaction on .....................................(Date)
.........................................................................(Owner's
signature).”

f. The foreclosure
consultant shall provide the owner with a copy of a foreclosure consultant
contract and the attached notice of cancellation in duplicate immediately upon
execution of the contract.

g. The foreclosure
consultant shall record the contract with the county clerk in the county in
which the distressed property is located, within 10 business days of its
execution.

5. a. In addition to any
other legal right to rescind a foreclosure consultant contract, an owner has
the right to cancel a foreclosure consultant contract at any time until after
the foreclosure consultant has fully performed every service the foreclosure
consultant contracted to perform or represented would be performed.

b. Cancellation occurs when
the owner delivers by any means, written notice of cancellation to the
foreclosure consultant at the address specified in the foreclosure consultant
contract. A notice of cancellation, if given by mail, is effective when
deposited in the mail properly addressed with postage prepaid. A notice of
cancellation sent by certified mail, return receipt requested, to the address
specified in the foreclosure consultant contract, shall be conclusive proof of
notice of cancellation.

c. A notice of
cancellation given by the owner need not take the particular form as provided
with the foreclosure consultant contract and, however expressed, is effective
if it indicates the intention of the owner not to be bound by the contract.

6. It is a violation of
this act for a foreclosure consultant to:

a. claim, demand, charge,
collect, or receive any compensation until after the foreclosure consultant has
fully performed every distressed property service the foreclosure consultant
contracted to perform or represented would be performed, unless compensation
for partial performance is expressly agreed to by both parties in the
foreclosure contract;

b. claim, demand, charge,
collect, or receive any fee, interest, or any other compensation for any
reason, in excess of two monthly mortgage payments of principal and interest,
or the most recent quarterly property tax installment on the distressed
property, whichever is less;

c. take a wage assignment,
a lien of any type on real or personal property, or other security to secure
the payment of compensation. Any agreement to take such security is void and
unenforceable;

d. receive any
consideration from any third party in connection with distressed property
services rendered to an owner;

e. acquire any interest,
directly or indirectly, or by means of a subsidiary or affiliate in a
distressed property from an owner with whom the foreclosure consultant has
contracted;

f. accept any power of
attorney from an owner for any purpose, except to inspect documents as provided
by law; or

g. induce or attempt to
induce an owner to enter a contract that does not comply in all respects with
sections 4 and 5 of this act.

7. a. Any waiver by an
owner of the provisions of section 4, 5, or 6 of this act is void and
unenforceable as contrary to public policy.

b. Any attempt by a
foreclosure consultant to induce an owner to waive the owner's rights is a
violation of this act.

8. a. A distressed property
purchaser who enters into a distressed property conditional conveyance or a
distressed property conveyance shall do so in the form of a written contract. A
distressed property conditional conveyance contract and a distressed property
conveyance contract shall be written in at least 14-point boldface type, in the
same language principally used by the owner to negotiate the sale of the
distressed property, shall be fully completed, signed, and dated by the owner
and the distressed property purchaser, and shall be witnessed and acknowledged
by a notary public, before the owner executes a deed or any other instrument of
conveyance of the distressed property.

b. A distressed property
conditional conveyance contract and a distressed property conveyance contract
shall contain the entire agreement of the parties, be fully assignable, and
survive delivery of any deed or any other instrument of conveyance of the
distressed property.

c. A distressed property
conditional conveyance contract and a distressed property conveyance contract
shall include the following terms, except that a distressed property conveyance
contract shall not be required to contain the terms set forth in paragraph (5):

(1) the name, business
address, and telephone number of the distressed property purchaser;

(2) the address of the
distressed property;

(3) the total consideration
to be given by the distressed property purchaser in connection with or incident
to the transaction;

(4) a complete description
of the terms of payment or other consideration including, but not limited to,
any distressed property services of any nature that the distressed property
purchaser represents will be performed for the owner before or after the
transaction;

(5) a complete description
of the terms of any related agreement designed to allow the owner to remain in
the dwelling including, but not limited to, a lease agreement, repurchase
agreement, contract for deed, or a lease agreement with an option to purchase;

(6) a notice of cancellation
as provided in this section;

(7) the following notice in
at least 14-point boldface type, if the contract is printed, or in capital
letters, if the contract is typed, and completed with the name of the
distressed property purchaser immediately above the statement required by this
section:

"NOTICE
REQUIRED BY NEW JERSEY LAW

Until your right to cancel
this contract has ended, .........................(Name) or anyone working for
.........................(Name) CANNOT ask you to sign or have you sign any
deed or any other document. You are urged to have this contract reviewed by an
attorney of your choice within five business days of signing it."; and

(8) if title to the
distressed property will be transferred in the transaction, the following
notice in at least 14-point boldface type, if the contract is printed, or in
capital letters, if the contract is typed, and completed with the name of the
distressed property purchaser immediately above the statement required by this
section:

"NOTICE
REQUIRED BY NEW JERSEY LAW

As part of this transaction,
you are giving up title to your home."

9. a. In addition to any
other right of rescission provided by applicable State or federal laws, the
owner has the right to cancel a distressed property conditional conveyance
contract or a distressed property conveyance contract with a distressed
property purchaser until midnight of the 10th business day following the day on
which the owner signs the contract, or until 1[8:00
a.m. on the last day of the period during which the owner has a right of
redemption]the
conclusion of a sheriff’s sale1
pursuant to the provisions of the “Fair Foreclosure Act,” P.L.1995, c.244
(C.2A:50-53 et seq.) or 1the
conclusion of a municipal tax sale2foreclosure2pursuant to1 the provisions of
the “tax sale law,” chapter 5 of Title 54 of the Revised Statutes, whichever
occurs first.

b. Cancellation of the contract
occurs when the owner delivers, by any means, written notice of cancellation to
the address specified in the contract. Notice of cancellation, if given by
mail, is effective when deposited in the mail properly addressed with postage
prepaid. Notice by certified mail, return receipt requested, to the address
specified in the contract, shall be conclusive proof of notice of cancellation.

c. A notice of
cancellation given by the owner need not take the particular form as provided
with the contract, and however expressed, is effective if it indicates the
intention of the owner not to be bound by the contract.

d. Within 10 business days
following receipt of a notice of cancellation delivered in accordance with this
section, the distressed property purchaser shall return to the owner, without
condition, any original contract and any other documents signed by the owner.

10. a. A distressed property
conditional conveyance contract and a distressed property conveyance contract
with a distressed property purchaser shall contain in immediate proximity to
the space reserved for the owner’s signature a conspicuous statement in a size
equal to at least 14-point boldface type, if the contract is printed, or in
capital letters, if the contract is typed, as follows:

"You may cancel this
contract for the conveyance of your house, without any penalty or obligation,
at any time before ...........................................(Date and time of
day). See the attached notice of cancellation form for an explanation of this
right."

The distressed property
purchaser shall accurately enter the date and time of day on which the
cancellation right ends.

b. A contract with a
distressed property purchaser shall be accompanied by a completed form in
duplicate, captioned "NOTICE OF CANCELLATION" in a size equal to a
14-point boldface type, if the contract is printed, or in capital letters, if
the contract is typed, followed by a space in which the distressed property
purchaser shall enter the date on which the owner executes any contract. This
form shall be attached to the contract, shall be easily detachable, and shall
contain in at least 14-point type, if the contract is printed, or in capital
letters, if the contract is typed, the following statement written in the same language
as used in the contract:

"NOTICE
OF CANCELLATION

...........................................

(Enter
date contract signed)

You may cancel this contract
for the conveyance of your home, without any penalty or obligation, at any time
before ............................ (enter date and time of day). To cancel
this transaction, mail or deliver a signed and dated copy of this cancellation
notice to ................................. (Name of purchaser) at
................................... (Street address of purchaser's place of
business) NOT LATER THAN .................................................
(Enter date and time of day).

c. The distressed property
purchaser shall provide the owner with a copy of the contract and the attached
notice of cancellation in duplicate at the time the contract is executed by all
parties.

d. The distressed property
purchaser shall record the contract and the attached notice of cancellation
with the county clerk in the county in which the distressed property is located
within 10 business days of the signing of the contract by both parties.

e. The 10 business days
during which the owner may cancel the contract shall not begin to run until all
parties to the contract have executed the contract and the distressed property
purchaser has complied with all the requirements of this section.

(1) enter into, or attempt
to enter into, a distressed property conditional conveyance unless the
distressed property purchaser verifies and can demonstrate that the owner has a
reasonable ability to pay for the subsequent conveyance of a fee interest back
to the owner under the terms of any option to purchase and a reasonable ability
to make monthly or any other required payments due prior to the subsequent
conveyance;

(2) fail to make a payment
to the owner at the time the title to the distressed property is conveyed from
the owner to the distressed property purchaser, or, if the distressed property
purchaser acquires a beneficial interest through a trust, at the time of the
creation of the trust, so that the owner has received consideration in an
amount of at least 82% of the property's fair market value, or, in the
alternative, fail to make a payment to the owner, in situations in which the
owner is unable to purchase the distressed property from the distressed
property owner at the time of the expiration of the owner’s option to purchase,
so that the owner has received consideration in an amount of at least 82% of
the property’s fair market value;

(3) enter into an option to
purchase or lease as part of a distressed property conditional conveyance
containing terms that are unfair or commercially unreasonable, or engage in any
other unfair conduct;

(4) represent, directly or
indirectly, that the distressed property purchaser is acting as an advisor or a
consultant, or in any other manner represent that the distressed property
purchaser is acting on behalf of the homeowner;

(5) misrepresent the
distressed property purchaser's status as to licensure or certification;

(6) do any of the following
until after the time during which the owner may cancel the transaction:

(a) accept from the owner an
execution of a deed or any other instrument of conveyance of any interest in
the distressed property;

(b) induce the owner to
execute a deed or any other instrument of conveyance of any interest in the
distressed property; or

(c) record with the county
recorder of deeds any document signed by the owner, including but not limited
to a deed or any other instrument of conveyance;

(7) fail to convey title to
the distressed property to the owner under an option to purchase provided for
in the distressed property conveyance contract, in situations in which the
terms of the conveyance contract have been fulfilled;

(8) enter into a distressed
property conditional conveyance if any party to the transaction is represented
by way of a power of attorney;

(9) fail to extinguish all
liens encumbering the distressed property, immediately following the conveyance
of the distressed property, or fail to assume all liability with respect to the
lien in foreclosure and prior liens that will not be extinguished by the
foreclosure, which assumption shall be accomplished without violations of the
terms and conditions of the lien being assumed;

(10) cause the property to be
conveyed or encumbered without the knowledge or permission of the owner, or in
any way frustrate the ability of the owner to complete the conveyance back to
the owner;

(11) fail to have all documents
executed as part of a distressed property conditional conveyance also signed by
a notary public licensed in the State who is unrelated in any way to the
distressed property purchaser or any participant in the distressed property
conveyance;

(12) fail to complete a
distressed property conditional conveyance in the office of a title insurance
producer licensed pursuant to the “New Jersey Insurance Producer Licensing Act
of 2001,” P.L.2001, c.210 (C.17:22A-26 et seq.), or in the office of an
attorney licensed to practice law in this State;

(13) fail to provide to the
owner, prior to the time of completion of a distressed property conditional
conveyance, a disclosure statement in a form to be designed and prescribed by
regulation by the Director of the Division of Consumer Affairs, within the
Department of Law and Public Safety, in consultation with the Commissioner of
Banking and Insurance, which statement shall require disclosure to the owner
of all costs that the owner will incur in connection with the conveyance and
any option for the owner to purchase the property, including a schedule of
monthly and annual payments, closing costs, and any additional costs and fees
related to the conveyance;

(14) claim, demand, charge,
collect, or receive any fee, interest, or any other compensation for any reason
from an owner, for services or as consideration for participating in the
conveyance transaction, in excess of two monthly mortgage payments of principal
and interest, or the most recent quarterly property tax installment on the
distressed property, whichever is less; 2[and]2

(15) in situations in which
the distressed property conditional conveyance involves a transfer of an
interest in fee from an owner to a distressed property purchaser, fail to
record the deed to the purchaser in the county clerk’s office in which the
property is located, or fail to include a statement on the recorded deed that
the deed was obtained through a transaction governed by the “Foreclosure Rescue
Fraud Prevention Act 2[.]2 ” 2;

(16) fail to notify in
writing all existing mortgage lien holders of the distressed property
purchaser’s intent to accept conveyance of an interest in the property from the
owner;

(17) fail to fully comply
with all terms and conditions contained in the mortgage lien documents,
including but not limited to due-on-sale provisions; and

(18) fail to satisfy all
qualification requirements for assuming the repayment of mortgage. 2

b. For purposes of
paragraph (1) of subsection a. of this section, an evaluation of
"reasonable ability to pay" shall include the owner’s debt to income
ratio, the owner’s residual income, the fair market value of the distressed
property, and the owner's credit history. There shall be a rebuttable
presumption that the distressed property purchaser has not verified reasonable
payment ability if the distressed property purchaser has not obtained documents
of assets, liabilities, and income, other than a statement by the owner.

c. For purposes of
paragraph (2) of subsection a. of this section: (1) an appraisal at the time
that the distressed property is conveyed by a person licensed or certified by
an agency of this State or the federal government shall create a rebuttable
presumption that the appraisal is an accurate determination of the fair market
value of the property; and (2) "consideration" means any payment or
thing of value provided to the owner, including reasonable costs paid to
independent third parties necessary to complete the distressed property
conveyance or payment of money to satisfy a debt or legal obligation of the
owner. "Consideration" shall not include amounts imputed as a down
payment or fee to the distressed property purchaser, or a person acting in
participation with the distressed property purchaser.

d. If an owner fails to
make a required payment or otherwise defaults under a distressed property
conditional conveyance contract which contains an owner’s option to purchase or
a promise to convey an interest in fee back to the owner, the distressed property
purchaser shall only enforce the forfeiture of the owner’s interest under the
contract as follows:

(1) for purposes of the
“Fair Foreclosure Act,” P.L.1995, c.244 (C.2A:50-53 et seq.), the distressed
property conditional conveyance contract shall be deemed to be a residential
mortgage, the distressed property purchaser shall be deemed to be a lender, and
the owner shall be deemed to be a debtor; and

(2) the distressed property
purchaser may bring an action to enforce the forfeiture of the owner’s interest
in the property and for recovery of possession of the property by use of the
procedures for foreclosure and judicial sale of residential real property
available to lenders pursuant to the provisions of the “Fair Foreclosure Act.”

12. A distressed property
purchaser, in the course of a distressed property conveyance, shall not fail
to:

a. make a payment to the
owner at the time the title to the distressed property is conveyed from the
owner to the distressed property purchaser, so that the owner has received
consideration, as defined by paragraph (2) of subsection c. of section 11 of
this act, in an amount of at least 82% of the property’s fair market value;

b. have all documents
executed as part of a distressed property conveyance also signed by a notary
public licensed in the State who is unrelated in any way to the distressed
property purchaser or any participant in the distressed property conveyance;

c. complete a distressed
property conveyance in the office of a title insurance producer licensed pursuant
to the “New Jersey Insurance Producer Licensing Act of 2001,” P.L.2001, c.210
(C.17:22A-26 et seq.), or in the office of an attorney licensed to practice law
in the State; 2[and]2

d. provide to the owner,
prior to the time of completion of a distressed property conveyance, a
disclosure statement in a form to be designed and prescribed by regulation by
the Director of the Division of Consumer Affairs, within the Department of Law
and Public Safety, in consultation with the Commissioner of Banking and
Insurance, which statement shall require disclosure to the owner of all costs
and fees that the owner will incur in connection with the conveyance 2;

e. notify in writing all
existing mortgage lien holders of the distressed property purchaser’s intent to
accept conveyance of an interest in the property from the owner;

f. fully comply with all
terms and conditions contained in the mortgage lien documents, including but
not limited to due-on-sale provisions; and

g. satisfy all
qualification requirements for assuming the repayment of the mortgage2.

13. Any waiver of the
provisions of sections 8, 9, 10, 11, or 12 of this act is void and
unenforceable as contrary to public policy.

14. a. Any person who
violates any provision of this act shall, in addition to any other penalty
provided by law, be liable to a penalty of not more than $10,000 for the first
offense, and not more than $20,000 for the second and each subsequent offense,
which penalty may be collected in a summary proceeding pursuant to the “Penalty
Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).

b. A person who violates
any provision of this act is guilty of a crime of the third degree. A person
who violates any provision of this act in connection with a pattern of
foreclosure rescue fraud or a conspiracy or endeavor to engage in a pattern of
foreclosure rescue fraud is guilty of a crime of the second degree.

c. Any distressed property
conditional conveyance or distressed property conveyance involving the transfer
of an interest in fee or a beneficial interest through a trust document, which
is made in violation of any provision of this act, is voidable and the transfer
may be rescinded by the owner within two years of the date of the transfer.

d. An owner1, or a municipal
tax lien holder of interest in a distressed property on behalf of an owner,1 may bring an
action in Superior Court against a foreclosure consultant or a distressed
property purchaser for any violation of this act, for treble damages,
attorney’s fees, costs of suit and appropriate equitable relief. In an action
under this subsection, the owner or 1municipal
tax lien holder1
may:

(1) cause a notice of lis
pendens to be filed in the office of the county clerk in the county in which
the property is located, pursuant to N.J.S.2A:15-6 et seq.; and

(2) introduce or provide as
evidence in the action, any contemporaneous oral agreements or representations
made to the owner by any party to a foreclosure consultant contract, distressed
property conditional conveyance contract, or distressed property conveyance
contract signed by the owner.

e. The remedies and rights
provided for in this act are not exclusive, but cumulative, and all other
remedies or rights provided by State or federal law, including, but not limited
to, those brought under the doctrine of equitable mortgage, are specifically
preserved.

15. The Director of the
Division of Consumer Affairs, within the Department of Law and Public Safety,
in consultation with the Commissioner of Banking and Insurance, shall enforce
the provisions of this act, and may promulgate regulations pursuant to the
“Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) necessary
to effectuate the purposes of the act.